Bank Depository Services

Transcription

1 Bank Depository Services Request for Proposals August 2014 City of Hudson Oaks 210 North Lakeshore Drive Hudson Oaks, Texas 76087

2 City of Hudson Oaks, Texas Request for Proposal For Bank Depository Services I. INTRODUCTION The City of Hudson Oaks, Texas is requesting proposals for a banking services contract for the period from the date of award to extend through September 30, 2017 (three year initial term). Through this contract the City intends to minimize banking costs, improve operational efficiency, and maximize investment capabilities. This Request for Proposal (RFP) represents the cash management goals, specifies all banks required qualifications, the banking services required, the estimated activity volumes on all accounts, the method and terms of compensation, submission instructions and the contract award provisions. II. PROPOSAL INSTRUCTIONS AND QUALIFICATIONS A. MINIMUM QUALIFICATIONS To assure a close working relationship, to facilitate available services, and to support local business, the entity may give priority to those banks with full service capabilities within the City limits. Any required statement regarding equal opportunity and affirmative action should be included if required/desired. The proposal submitted will become part of the final contract. B. PROPOSAL SUBMISSION INSTRUCTIONS 1. Proposal Format In order to fully and equitably evaluate each bank's ability to meet the banking services needs of the City, a standard reply format is required. Each proposal must include a response to each item in the RFP in the order given. Only proposals submitted in the prescribed format and using the exhibit forms provided will be evaluated for contract award. 2. Submission Requirements Proposals must be submitted in sealed envelopes marked RFP DEPOSITORY SERVICES, received no later than 3:00 pm Monday, September 22, 2014, and addressed to: Patrick Lawler, City Administrator City of Hudson Oaks 210 North Lakeshore Drive Hudson Oaks, Texas 76087

3 3. RFP Questions Questions regarding this RFP or the service requested will be accepted in written form at the address below on or before 3:00 pm Monday, September 15, Responses to all material questions submitted will be communicated to each prospective bidder. 4. Request for Proposal Amendments Chad Janicek, Assistant City Administrator City of Hudson Oaks 210 North Lakeshore Drive Hudson Oaks, Texas Modifications or additions may be made as a result of questions submitted. Written notification of any such change will be made in writing to all known bidders. 5. Selection Criteria Evaluation of proposals will be made on the basis of the following objectives: Time deposit interest rates 25% Cost of Service 30% Service availability 20% Safety and creditworthiness of bank 25% 6. Award of Bid and Service Initiation The contract is expected to be awarded by the City Council at its regular meeting Thursday, September 25, 2014, at the City Hall Council Chambers. These dates and times are subject to change. The City Council will award the contract based on the proposal determined to be the best value or most advantageous to the City. The City reserves the right to accept or reject any or all proposals, and at its discretion to waive any defect or informality in the proposal. 7. Contract Term and Other Stipulations The term of the contract shall begin upon execution of the depository agreement. The initial term of the agreement shall be for three years, with two automatic renewals of one year each, unless either party gives notice of intent not to renew at least sixty days prior to the renewal date. In accordance with state law, the term of the agreement and any renewals shall not exceed five years. The bank agrees to honor and continue any investments made during the term of this agreement that will mature after the expiration date at the same rate of interest. The City expressly reserves the right to terminate the depository agreement with or without cause at any time by providing written notice to the bank to close its accounts.

4 The bank s records relating to the City accounts shall be open to review by either City staff members or City appointed independent auditors during normal business hours. III. REQUIRED FINANCIAL INSTITUTION INFORMATION All banks must provide, as part of the proposal: audited financial statements for the most recent fiscal year, a copy of the current call report, and a statement regarding any recent or foreseen merger or acquisition. IV. REQUIRED BANKING SERVICES This section lists all the services to be provided by the bank under this agreement. Attachment A lists each of these services. The bank should use this Attachment to provide the specific price for each service. A. Consolidated Account Structure The bank is to provide a master consolidation account and zero balance accounts from which daily balance and detail reporting is available. The City s current account structure is included as Attachment B. B. Wire Transfer Services The City currently generates approximately 1 incoming wire per quarter and 2 outgoing wires per year. A standard wire transfer agreement will be executed with the bank. This proposal should include a copy of your standard transfer procedures and wire transfer agreement. The City requires adequate security provisions and procedures. If the wire transfer requests are available on line, full information should be submitted detailing the use. C. Automated Daily Balance Reporting The City requires an automated PC-based reporting system for access to the closing ledger and available balances. Stipulate the time at which the access is available and describe the system to be used. Reporting should include balance and detail reporting. Samples of the reports are to be included in the proposal. D. Sweep Account Provisions If the City chooses, the bank will be responsible for automatically sweeping the balances in all accounts daily to an investment option (money market fund, repo, etc.). Describe the sweep options and, if a money market fund is used, provide a prospectus. The accounts will be swept to the compensating balance.

5 E. Investment of Idle Funds and Safekeeping of City Securities All certificates of deposit bought by the City will be bought on a competitive basis. The City has no obligation to invest its funds with or through the bank. If the bank is proposing overnight repurchase agreements, an executed Master Repurchase Agreement is required. In order to fulfill GASB III requirements for reporting, if a repurchase agreement is executed with the bank itself, the collateral must be held in the trust department of the bank in a separate account. All securities will be handled on a delivery versus payment (DVP) basis as they are cleared into and out of the account. There will be approximately ten securities in safekeeping at any time. All clearing and safekeeping will be in the bank or its correspondent. All correspondent and safekeeping arrangement will be stipulated in the proposal. F. Standard Disbursing Services Standard disbursing services for all accounts are required to include the payment of all checks upon presentation. G. Standard Deposit Services The bank must guarantee immediate credit on all incoming wire transfers and U.S. Treasury checks upon receipt and all other checks based on the bank s published availability schedule. The Bank should specify in their proposal their deposit requirements and commercial and retail deposit locations, including night deposit services and procedures. H. Reporting and Account Analysis Monthly account analysis reports must be provided by the bank on a timely basis for each account and on a total account basis. A sample account analysis format must be provided as part of the proposal. Samples of monthly statements should also be provided. The monthly statements are to be received within ten business days of the next month. I. Account Executive An account executive must be assigned to the account to coordinate the account services and expedite the solution of any problem. A trained and competent backup for the account executive, familiar with the account, should be assigned in the proposal. Stipulate the name and a brief biography of the account executive to be assigned to the City s account. J. Direct Deposit Describe the requirements and deadlines for computer tap for ACH transactions. The proposal should indicate when funds will be available in participating banks.

6 K. Daylight Overdraft Provisions Every effort will be made to eliminate daylight overdraft situations on the account. However, in case this situation does arise, the proposal should include any and all bank policies regarding daylight overdrafts charges or handling procedures. L. Stop Payments The proposal must include a statement on the proposed stop payment process on an automated or manual basis. M. Collateralization of Deposits The bank must agree to obtain and maintain acceptable collateral sufficient to cover all anticipated time and demand deposits, above the FDIC insured limit of $250,000.Collateral shall consist only of eligible securities. Eligible securities include the following: Obligations of the United States and of its agencies and instrumentalities, which have a liquid market with a readily determinable market value; Direct obligations of the State of Texas and agencies thereof; Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas of the United States; Obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent. Securities used to pledge against time and demand deposits must be held in an independent thirdparty safekeeping institution outside the bank s holding company. The bank will execute a tri-party safekeeping agreement with the City and the Safekeeping bank for safekeeping of these securities. Collateral will be maintained at a minimum of 102% and marked to market at least once a month. Control will be shared jointly between the bank and the entity. Substitution will be approved by the City and not unduly withheld. Substitutions of collateral will be requested in writing and new collateral will be received before the existing collateral is released. The proposal will name the safekeeping bank for collateral. N. Additional Services If new services become available and are provided during the period of this contract, they will be charged at the bank's then published rate. V. OTHER SERVICES The City is interested in obtaining service and cost information on additional services for possible use during the contract period. These services are not required but will be evaluated in terms of availability, feasibility, service levels, service providers and cost. The City will make its determination after receipt of

7 proposals as to whether a service will be used. If the service is accepted later in the contract period the services and charges stipulated in the proposal will be applied. A. Lockbox Services The City may choose to utilize lockbox services for certain revenue collections. Describe the service including the lockbox location and a full description of the service. VI. BANK COMPENSATION Any net settlement on compensating balances will be made annually. If fees are chosen as the payment methodology, fees will be paid monthly after receipt of the account analysis.

8 Attachment A Banking Services Charges Any and all anticipated service charges must be shown on this form to be applicable under the agreement. Add additional lines as required. Service Unit Unit Charge Cost of Service Account Maintenance Daily Balance Reporting Zero Balanced Account Master Account Subsidiary Accounts Credits Posted Debits Posted Encoding Charge ACH Processing Origination of File Per tape ACH Deletions ACH Entries Returned Checks Controlled Disbursement Items Deposited Deposits Commercial Deposits Group I Items Group II Items Group III Items Group IV Items Stop Payments Wire Transfers Incoming Outgoing Investment Safekeeping S/keeping Interest/Credit S/keeping receipt deposit S/keeping outgoing Securities DVP FRB Securities DVP NY Check Printing Extra Statements Disposable Bank Bags Per Item Lockbox Cutbacks Special Handling

9 Attachment B Current Account List Account Name Pooled Cash (Sweep Account) Utility Construction Projects Building Fund US180/Lakeshore Sinking Fund Certificate of Obligation 2012 Sinking Fund Water Debt Sinking Fund Regional Water Debt Sinking Fund